chap004 Analyzing Investing Activities(财务报表分析-台湾中兴

4CHAPTERAnalyzingInvestingActivitiesMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.Current(short-term)AssetsNoncurrent(Long-Term)AssetsResourcesorclaimstoresourcesthatareexpectedtobesold,collected,orusedwithinoneyearortheoperatingcycle,whicheverislonger.Resourcesorclaimstoresourcesthatareexpectedtoyieldbenefitsthatextendbeyondoneyearortheoperatingcycle,whicheverislonger.CurrentAssetIntroductionClassificationCurrentAssetIntroductionOperatingCycleServicessoldtocustomersCashonhand12Cashpaidtoemployees34CustomerspayforservicesProductssoldtocustomersCashonhand12Cashpaidforproducts4Customerspayforproducts3CashCurrency,coinsandamountsondepositinbankaccounts,checkingaccounts,andsomesavingsaccounts.CurrentAssetIntroductionCash,CashEquivalentsandLiquidityCashEquivalentsShort-term,highlyliquidinvestmentsthatare:Readilyconvertibletoaknowncashamount.Closetomaturitydateandnotsensitivetointerestratechanges.CurrentAssetIntroductionCash,CashEquivalentsandLiquidity•Doesnotpresentseriousvaluationproblemsbecauseofitsliquidity•Requiresspecialprecautionsagainsttheftanddefalcation•Examineforrestrictionsondisposition—removerestrictedbalancesfromcurrentassetssincetheyarenotavailableforpayingcurrentobligations—inassessingliquidity,considerrepercussionsofviolatingtheseagreements—exposureoftenmeasuredbytheratioofrestrictedbalancestothetotalCurrentAssetIntroductionAnalysisofCashandCashEquivalentsCashandCashEquivalentsasaPercentofTotalAssets0.00%5.00%10.00%15.00%20.00%EASTMANKODAKCTEXASINSTRUMENCOCA-COLACOTARGETCORPDELTAAIRLINESMERCK&COReceivablesareamountsduefromothersthatarisefromthesaleofgoodsorservices,ortheloaningofmoneyAccountsreceivablerefertooralpromisesofindebtednessduefromcustomersNotesreceivablerefertoformalwrittenpromisesofindebtednessduefromothersCurrentAssetIntroductionReceivablesReceivablesarereportedattheirnetrealizablevalue—totalamountofreceivableslessanallowanceforuncollectibleaccountsManagementestimatestheallowanceforuncollectiblesbasedonexperience,customerfortunes,economyandindustryexpectations,andcollectionpoliciesCurrentAssetIntroductionValuationofReceivablesAssessmentofearningsqualityisoftenaffectedbyananalysisofreceivablesandtheircollectibilityAnalysismustbealerttochangesintheallowance—computedrelativetosales,receivables,orindustryandmarketconditions.Twospecialanalysisquestions:(1)CollectionRiskReviewallowanceforuncollectiblesinlightofindustryconditionsApplyspecialtoolsforanalyzingcollectibility:•Determiningcompetitors’receivablesasapercentofsales—vis-à-visthecompanyunderanalysis•Examiningcustomerconcentration—riskincreaseswhenreceivablesareconcentratedinoneorafewcustomers•Investigatingtheagepatternofreceivables—overdueandforhowlong•Determiningportionofreceivablesthatisarenewalofpriorreceivables•Analyzingadequacyofallowancesfordiscounts,returns,andothercredits(2)AuthenticityofReceivablesReviewcreditpolicyforchangesReviewreturnpoliciesforchangesReviewanycontingenciesonreceivablesCurrentAssetIntroductionAnalyzingReceivablesSecuritization(orfactoring)iswhenacompanysellsalloraportionofitsreceivablestoathirdpartyReceivablescanbesoldwithorwithoutrecoursetoaseller(recoursereferstoguaranteeofcollectibility)SaleofreceivableswithrecoursedoesnoteffectivelytransferriskofownershipCurrentAssetIntroductionSecuritizationofReceivablesForsecuritizationswithanytypeofrecourse,thesellermustrecordbothanassetandacompensatingliabilityfortheamountfactoredForsecuritizationswithoutanyrecourse,thesellerremovesthereceivablesfromthebalancesheetCurrentAssetIntroductionAnalysisofSecuritizationCurrentAssetIntroductionAnalysisofSecuritizationBalanceSheetEffectsofSecuritizationAssetsBeforeAfterAdjustedCash50$450$450$Receivables4000400Othercurrentassets150150150Totalcurrentassets6006001,000Noncurrentassets900900900Totalassets1,500$1,500$1,900$LiabilitiesCurrentliabilities400$400$800$Noncurrentliabilites500500500Equity600600600Totalliabilitiesandequity1,500$1,500$1,500$KeyratiosCurrentratio1.501.501.25TotalDebttoEquity1.501.502.17Prepaidexpensesareadvancepaymentsforservicesorgoodsnotyetreceivedthatextendbeyondthecurrentaccountingperiod—examplesareadvancepaymentsforrent,insurance,utilities,andpropertytaxesCurrentAssetIntroductionPrepaidExpensesTwoanalysisissues:(1)Forreasonsofexpediency,noncurrentprepaidssometimesareincludedamongprepaidexpensesclassifiedascurrent--whentheirmagnitudeislarge,theywarrantscrutiny(2)AnysubstantialchangesinprepaidexpenseswarrantscrutinyAnalysisofPrepaidsInventoriesDefinitionsInventoriesaregoodsheldforsale,orgoodsacquired(orinprocessofbeingreadied)forsale,aspartofacompany’snormaloperationsExpensingtreatsinventorycostslikeperiodcosts—costsarereportedintheperiodwhenincurredCapitalizingtreatsinventorycostslikeproductcosts—costsarecapitalizedasanassetandsubsequentlychargedagainstfutureperiod(s)revenuesbenefitingfromtheirsaleMerchandiseAvailableforSaleNetCostofPurchasesCostofGoodsSoldBeginningInventoryEndingInventoryInventoriesInventoryCostFlowsFIFO44%Other4%WeightedAverage20%LIFO32%UseofInventoryMethodsi